Is Photon Capital overvalued or undervalued?

As of 17 October 2025, the valuation grade for Photon Capital has moved from risky to expensive. The company is currently considered overvalued, with a PE ratio of -27.79, an EV to EBITDA ratio of -12.49, and a Price to Book Value of 2.14. These figures indicate significant financial distress, particularly highlighted by a negative ROE of -26.41% and a negative ROCE of -7.69%.
In comparison to peers, Photon Capital's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts an attractive EV to EBITDA of 8.94. The stark contrast in these ratios suggests that Photon Capital is not only overvalued but also underperforming relative to its industry peers. Additionally, while Photon Capital has outperformed the Sensex in the short term, with a 1-week return of 18.33% compared to the Sensex's 1.76%, the long-term outlook remains concerning given its current valuation metrics.